Abercrombie Income Jumps 79%

Columbus, Ohio, Teen fashion retailer Abercrombie & Fitch Co.’s third-quarter earnings surged 79% and the company raised its profit guidance for the year. Sales rose 35% to $704.9 million from $520.7 million a year ago, with particularly strong gains in the lower-priced Hollister Co. brand and the abercrombie kids stores. Same-store sales rose 25%.

Abercrombie earned $71.6 million, or 70? a share, for the three months ended Oct. 29 compared with $39.9 million, or 42? a share, in the same period last year, when the company paid nearly $33 million to settle three class-action lawsuits. Excluding a one-time charge from an executive severance package, Abercrombie earned $79.8 million, or 88? per share, in the latest quarter. Analysts had predicted earnings of 80? a share.

“An intense focus on getting it right is exactly why Abercrombie & Fitch is better positioned now than it has ever been,” CEO Mike Jeffries said.

At the end of the quarter, Abercrombie operated 354 signature stores, 297 Holli